With a looming recession and increased cost of borrowing and people relying on credit cards to make ends meet. I anticipate that there will be an increase in defaults. This will impact the bottom line of Amex. We can see this in bonus changes, and now increased resignations.
If we ever get a layoff this year it will be the 3rd time layoffs have happened in 5 years since 2019.
@2jxe+1rsWXq8r He's winding down his time at Amex. Maybe before he goes he lays a couple of people off first before he gets too unpopular?
The CEO sold 37% of his stock a few weeks ago, if you're tracking that info.
Just wait until the US economy gets smashed with a heavy recession with all these stocks and markets overvalued propped up by AI and Taylor Swift, all business Cardmembers will feel the brunt of a slowdown and be forced to close shop. Corporate Amex departments will be first on the chopping block. Followed by Biden's announcement on eliminating Credit Card junk fees for end consumer protection, there goes a portion of revenue we get from our Consumer Card products. Australia is following a similar direction of "least cost routing", which would actually persuade customers to use VISA and Mastercard if they can avoid getting that extra 0.5% surcharge.
You can feel that people and governments are increasingly hating the way Card issuing companies are passing on ridiculous surcharges and junk fees for very little rewards in return. Not to mention that the cost of borrowing money has gone up for banks and credit cards alike over the last 24 months.
They won't call it layoffs or mass redundancies because it will spook shareholders into a sale frenzy. All they have to do is force you to go into the office 7 days a week, pay you below inflation rate and make working there unbearable. Then rely on natural attrition, or call it something else like a "restructuring"...anything but the R or L word.
CEO is close to retiring so the only goal he has at the moment is to maximize his stock compensation package before cashing out. Paying out severance packages is the last thing he wants to do now.
"Amex touted no layoffs during and after the pandemic. Where did the layoffs occur?"
@1jhi+1rsWXq8r Someone has short term memory. Cough ICS Restructuring and Forced RTO attritions.
https://money.usnews.com/investing/news/articles/2024-02-09/amexs-cumulative-restructuring-cost-at-277-million-in-2023
No knowledge of layoffs in the past 5 years. Amex touted no layoffs during and after the pandemic. Where did the layoffs occur? Were they secretive?